Selecting Your Medicare Supplement Plan

by Steve

Medicare Supplement plans are a kind of private health insurance policy that is designed to fill in the gaps that are left in the Original Medicare plan coverage.  These plans work similarly to coinsurance and deductibles, although some plans cover costs that are not at all addressed by the Original Medicare plan.

Because the Supplemental plans cover the gaps between the Original coverage and the actual cost payable, they are known as “Medigap” policies.  You should keep in mind that in order to purchase and be covered by a Supplemental plan, you must first have signed up for the Original Medicare plan Part A and Part B.  Medicare Supplement plans (Medigap) cannot be sold independently.

These Medicare Supplement plans are privately administered health insurance plans and only private insurance companies may sell them.  No government organization can sell them.  While only private insurance companies can sell them, they are also required to provide the exact same benefits under each plan type.  There are 12 plan types, labeled A through L.  They all have their individual and separate coverage, but the plans under the same plan letter must, by law, provide the same benefits no matter which carrier is offering them.  This means that, it does not matter which insurance carrier you choose to deal with – each Supplement plan type (designated by its letter) will provide the same benefits and coverage to you, nothing more and nothing less.

It can be confusing to know which insurance carrier to select, as well as be confusing to know which Medicare Supplement plan will suit your needs best.  Because of the complexity of this decision, it can be a great idea to meet with an insurance broker who can help you to compare and contrast the different insurance companies as well as go over what each Supplement plan entails.  An insurance broker can also help you sort out the varying pricing and value added benefits in choosing different companies.

That’s right, although the law requires that the insurance companies all offer the same basic coverage inside each of the 12 Supplement plans, they are not required to offer the same pricing.  You will also want to be aware of the insurance company’s policies and value added benefits, such as locations and customer service.

Be sure to ask your Yuma Insurance Agent about the extra benefits provided by plans B through J.  Some of the plans can save you quite a bit of money in terms of the premium or in terms of the deductible.  Ask plenty of questions so that you understand how to get the most cost effective plan to suit your needs.

Leave a Comment

Previous post:

Next post: